3 Top Cannabis Stocks to Buy in November
It's been a mostly down year for cannabis stocks. Declining profits for some multi-state operators (MSOs) have soured many investors on the sector, with the ETFMG Alternative Harvest ETF and the AdvisorShares Pure Cannabis ETF down roughly 46% and 58%, respectively, so far this year.
The reasons for declining profits include a glut of cannabis, persistent illegal cannabis markets in some states that compete against legal cannabis growers, and complex regulatory environments in some states that include high levels of taxation for cannabis companies.
But some cannabis companies continue to thrive and it stands to reason that if they can do well in difficult periods, they will make better long-term investments, particularly if the expected growth in cannabis comes to fruition. A study by Grand View Research says legal cannabis in the U.S. will be a $40 billion market by 2030, after a compound annual growth rate of 14.9%. This month, Innovative Industrial Properties (NYSE: IIPR), Green Thumb Industries (OTC: GTBIF) and Jazz Pharmaceuticals (NASDAQ: JAZZ) all reported third-quarter results that showed revenue growth, both year over year and sequentially, and I think they are stocks worth buying now.
Source Fool.com
